The video games industry can generate buzz and excitement like no other. Its evolution in recent years from a niche market to a global mainstream industry makes this so. Spectacular growth is hard to ignore in any industry, especially if every sector within it is affected. Such is the case with the video games industry so, with that in mind, if you find penny stocks in gaming then don’t take your eyes off them.
Penny Stocks in Gaming
Gaming culture catches our eye more than most simply because video game creators offer investors the potential of backing the next multi-billion dollar trending game. If that happens, then everybody wins.
For example, one game alone, Pokemon Go, generated over $2 billion USD by 2018. This is just one example of a myriad of games offering investors similar potential in this industry. You can understand the appeal.
Especially if we look at gaming penny stocks such as Zynga Inc (NASDAQ:ZNGA). Currently, ZNGA stock sells for $5.24 USD on the NASDAQ exchange. It’s clear to see that this stock is on an upward trajectory as of late; ZNGA has almost doubled since November 2018.
The stats prove that the demand for games is only growing. According to BroadbandSearch, gamers are expected to spend over $151.9 billion USD on games alone in 2019. This figure is up from $137.9 billion in 2018, which is up again from $121.7 billion in 2017. The trend has carried over so much so, that since 2013, the entire gaming industry has more than doubled its worth. There are no other sectors that can boast such growth in only six years.
The gaming industry is now estimated to hit $180 billion by 2021, and gaming penny stocks are one of the ways investors can get in on the action.
We’ve come a long way since the early days of video games on the Atari or on the NES. Online gaming, improving technologies in hand-held devices, and smart-phones have created a whole new world of entertainment. All in all, we have vastly increased the many ways in which we can game and the number of platforms on which to game.
Where volatility lies in this sector is holding onto the crown; if a video game publisher creates a flagship title, investors tend to expect sustained success. If that doesn’t happen then volatility in gaming stocks can be rife. Investors should be aware that penny stocks in gaming do offer massive potential, but it is never plain sailing in the investment world.
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